Staying competitive in digital era

SMEs must digitally transform to be future-ready, says Wong.

AGAINST the backdrop of the current challenging economic environment, digital transformation is needed to increase competitiveness, especially for SMEs.

The key message was echoed by all the speakers at the SME Thought Leadership Tea Talk #3, held at Menara Star, Petaling Jaya.

For Christy Ng Shoes founder Christy Ng, who started her business from home in 2012, technology was the answer to scaling up and meeting the varied needs of customers across the globe.

Highlighting the complexity of today’s consumers, she noted that customisation and personalisation were among the top demands that were not being met, especially in the footwear industry.

Ng delivering her talk at the SME Thought Leadership Tea Talk #3.

“We started to get unique requests from Western customers, who wanted customised shoes and were willing to pay a premium for the service. This was when I saw the huge untapped market to look into.

“I believe the more you solve customer problems, the more money you make and the more it grows, ” she said.

The key to unlocking demand globally, was the 3D shoe design engine integrated on its website, a scalable proposition that enabled potential customers to customise the shoes they want — including design, colour, style and insole – and see them in 360 degrees online.

Ng explained, “We offer approximately a million possible combinations and permutations of our products, but we control the base design and the basic templates are the same.

“Inventory is always an issue for start-ups and SMEs, because inventory is money, but this allows us to have more combinations and designs than any other shoe company, without heavy investment or having to manufacture each one.

“We are fully digital and we serve a global audience 24/7, driving sales through a borderless market through technology adoption.”

For an existing traditional business to transform digitally, it can often be challenging.

Lee says SMEs must be clear about their objectives and set measurable targets for technology adoption.— FAIHAN GHANI/The Star

Sydney Cake House Sdn Bhd chief information officer Dr Lee Zhi Sam shared first-hand experience in the company’s journey towards the fourth industrial revolution during his session, stressing on leveraging technology adoption to upscale the business.

It was the introduction of smart manufacturing technology that helped Sydney Cake House do away with its labour intensive lines for better and more efficient mass production.

However, he cautioned that it was important for SMEs to first understand their intentions for adopting technology before embarking on any initiatives.

“The primary need is to understand the expectations of the business and narrow down the objectives before embarking on any digital adoption, so you can get the right people in.

“You need to make technology adoption measurable, measuring the right things, in terms of business outcomes and return on investment (ROI). Without such alignment, it would be a wastage of resources and you’ll just be burning money, ” he added.

He also advised businesses to start off with small projects that would bring quick ROI within a three to six months’ period.

Credit Guarantee Corporation Bhd (CGC) business division marketing and sales senior vice-president Wong Keet Loong said digitalisation was the way forward for SMEs.

“Transforming a business from a traditional one to one using digital capabilities through technology is about being future-ready. If you don’t embrace digital technologies, it’s going to have an impact on your business. The crux of it is that you cannot do business without these technologies.

“The success of digital transformation revolves around the creation of customer value creation, what separates you from the competition and understanding the importance of improving processes before automating them.”

During his talk, he also briefly touched on the business advisory services landscape and the avenues where SMEs could seek assistance.

The half-day SME Thought Leadership Tea Talk #3 was aimed at raising awareness of e-commerce and the best ways for SMEs to capitalise on technology to thrive and remain competitive.

Created as a platform for dialogue and learning within the business fraternity, the series is aimed at dissecting emerging business issues and identifying opportunities that can be leveraged to grow businesses.

The SME Thought Leadership 2019 series is organised by Star Media Group and presented by CIMB Bank Bhd.